Affordable Care Act Marketplace

The 2022 Budget Reconciliation bill may ultimately contain a well- funded provision that directs the IRS to evaluate the development of an IRS-operated free tax filing system. Recent experience with similar government-run ventures indicate that the federal government is ill-equipped to develop such a system. An IRS-run tax filing system would require substantial investments in web development, technology and data infrastructure as well as technical and administrative services. The IRS would be required to develop, test, and continuously update user-centric software to reflect changes in tax law. It would also be charged with protecting taxpayer data with enhanced authentication and encryption systems, as well as detecting and preventing fraud and malicious cyber threats. Such a system would require extensive services such as providing a timely, responsive online customer help desk and running a consumer call center to assist taxpayers when software and submission issues arise.


The American Coalition for Taxpayer Rights (ACTR) was formed in 2011 by the nation’s leading retail tax preparation and tax software companies and financial institutions, which collectively prepare and file more than 120 million of the 155 million federal tax returns annually. ACTR advocates for taxpayer rights and strengthens America’s voluntary tax compliance system.

Tax Preparers

Financial Institutions